Collector v.

Fisher
110 Phil 686. January 28, 1961

TOPIC: Property Relations between Spouses; General Provisions

FACTS:
Walter Stevenson married another British subject Beatrice Stevenson in
the Philippines in 1909. They continued living in the Philippines until they
decided to leave for California in 1945. Walter instituted his wife as his sole
heiress in 1947 before he died in 1951. Thereafter, administration proceedings
were initiated in CFI Manila for settling their estates including their Baguio real
property and 210,000 stock shares in local mines. Ian Statt, the appointed
ancillary administrator, filed estate and inheritance tax returns in order to
secure CIR waiver on the inheritance tax due on the shares. Later, Statt
amended the estate and inheritance tax return pursuant to NIRC. Among the
changes was the devaluation of the shares. Meanwhile, Beatrice assigned her
estate rights and interests to the respondent-spouses Fisher. Later, another
amendment containing further reductions was made pursuant to reciprocity rule
of NIRC. This led to their position that they had overpaid the government.
Case was heard by the Court of Tax Appeals but both the petitioner and
respondent appealed from this decision.
ISSUE:
WON half of the decedents estate (as share of the surviving spouse) must
be deducted from the taxable net estate pursuant conjugal partnership laws
HELD:
Yes. It is a well-known doctrine (at that time) that in the absence of any
pre-nuptial agreement with regard to marriage settlements, CPG will govern
property regime of spouses. This entails that half of the estate, as the wifes
share, must be deducted from the taxable net estate.
According to the Old Civil Code, it is the nationality principle that should
apply to the case at hand but the petitioner must adduce proof about
British laws not following CPG regime and vesting all the properties to the
husband. The petitioner wasnt able to adduce proof. Therefore, Whartons
processual presumption applies: The law of England is the same as ours with
regard to the property regime that governs - CPG.